Senior Discounts, Generational Pride & Food Insecurity
By Clem Nilan, GM
Onion River Co-op offers a 5% discount to seniors. In order to get this discount a senior simply needs to self-identify during the checkout process as being above 60 years old.
As I review the Co-op’s financials, I see a large increase in the use of this senior discount, and I theorize that it’s an effect of being mired in a recession for the last 2 1/2 years. We budgeted for this discount to grow at 5% this fiscal year. The actual growth is more than triple …at 16%. One thing puzzles me.
If the recession has hit so hard that seniors are using this discount so much more, it seems logical (to me) to think these same seniors would also embrace 3Squares VT (formerly known as Food Stamps). The Chittenden County Hunger Council reports that's not the case… that only 25% of eligible seniors apply for 3Squares VT. The reason given is generational pride.
Generational pride at the Co-op translates into seniors accepting a discount that is not need-based but declining to use one that is. Apparently admitting to the need is a sting to one's pride.
The long-term survival of our Co-op requires discounts to be sustainable- not to exceed our sales growth. There are several concerns in a long time viability of maintaining our senior discount program. We want our programs, as much as is possible, to be mission-related. The idea behind the senior discount program is one of fostering a high quality of life for low to moderate income members of our community. Because our senior discount is not need-based, our senior discount doesn't precisely meet this criterion. Our senior discount as it stands today simply requires one to be beyond 60 years old. As such it is a bit of a blunt instrument …at least in terms of addressing food insecurity for our senior population.
Our other outreach program targeted toward our low to moderate income members is Food-for-All. This program is need-based. Participants must show verification of 3Squares VT, WIC or disability benefits. Eligible Food-for-All participants receive a 10% discount on products at the Co-op (excepting those not allowed by law). Food-for-All is a much more effective tool in addressing food insecurity issues. It is open to all Co-op members including seniors. There's even a waiver of the $15 annual equity payment should the applicant declare financial hardship.
Both the senior discount and the Food-for-All program are exceeding the sales growth rate of the Co-op. If these accelerated growth rates continue, we will need to address questions of sustainability. If, in the most dire of circumstances, a choice between the two programs needs to be made, my recommendation would be to retain the need-based Food-for-All, as it is more closely aligned with the Co-op’s values.
Of course we wouldn't want to get to that impasse. There are potential intermediary steps. We are considering raising the qualifying age of the senior discount from 60 to 65. We are also considering limiting the senior discount to members of the Co-op.
The Co-op would like to know what you think of these ideas. If you are a senior customer of the Co-op please participate in our Survey by answering a few questions.